GM plans to eliminate Fox Motors' franchise in Charlevoix

CHARLEVOIX - Targeted for the elimination of a General Motors franchise, the operators of a local car dealership hope they can convince the automaker to reconsider.

Rick Summers, regional director for Fox Motors, said the company's Charlevoix dealership received a letter from GM Friday indicating that its franchise would not be renewed beyond the next 18 months.

"We are appealing that, because we think they made a misinformed decision," he added. "Our sales have been above objective most every quarter for the past two years."

The dealership, which carries GM's Chevrolet, Buick, Pontiac and Cadillac brands, also has seen positive results in terms of customer satisfaction ratings, Summers noted.

"We're just kind of puzzled and looking for answers on what's what," he said.

Summers noted that the dealership hasn't received much detail from GM as to what prompted its non-renewal decision. Based on what he heard from one GM regional staffer, the Fox manager said the dealership's pairing of GM and Chrysler franchises may have played a part.

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If GM doesn't reconsider, Summers said the Fox chain's relationship with other automakers perhaps could help in landing a new franchise for the Charlevoix location. Operating as a Chrysler-only store - Fox carries the Chrysler, Jeep and Dodge lines as well as Chrysler's Global Electric Motorcars in Charlevoix - is another possibility for the future, he added.

This year, GM products account for about half of the Charlevoix location's new vehicle sales, Summers said, and had generated a bit larger share in years past.

Summers said he's heard from some in the community who intend to organize a letter-writing campaign in hope of getting reconsideration from GM.

"That made me feel real good," he added.

GM, which is looking to thin its dealer network as part of cost-cutting restructuring efforts - notified dealerships in writing on Friday if they were targeted for franchise elimination. For the automaker's two Petoskey dealerships, the day passed without that type of news arriving.

Mary Foster, one of four siblings who operate Fletch's of Petoskey - which carries Buick, Pontiac and GMC - said the lack of an elimination notice was "a tremendous relief for the employees (and) for us, too."

Added Chevrolet-Cadillac dealership owner Dave Kring: "You have mixed emotions because your franchise apparently is safe. However, someplace out their you may have friends who got notification that they will not be renewed.

"My heart goes out to those folks who may have gotten the letter."

GM spokeswoman Susan Garantakos said the automaker isn't commenting on the circumstances leading to non-renewal for specific dealerships.

In general, she noted that sales volume and various other performance metrics - like sales effectiveness, customer satisfaction, dealer profitability and capitalization and sales facility image - were considered in deciding dealerships' future.

As GM looks to make itself financially viable, Garantakos said "some very difficult decisions" were made concerning the dealer network.

About 1,100 of General Motors' U.S. dealers received notice Friday of the automaker's plans to eliminate their franchises.

By the end of 2010, the Detroit-based automaker intends to cut its current list of 6,000 dealerships down to about 3,600 as part of its restructuring efforts. Additional thinning of the ranks is expected through attrition or voluntary separation, continuing consolidation efforts, the phase-out of the Pontiac brand and the elimination of the Saturn, Hummer and Saab lines from GM's portfolio through a sale or other means.